Our latest Business Panel report on the UK economic outlook is now available. Headline findings include:-

Only 8% rate the government’s handling of the economy as very good, 52% as acceptable, 28% could have been better and 8% as shocking.

The panel predicts interest rates will be at (average) 0.8% in 1 year’s time and 1.88% in 3 years’ time.

Not a single respondent expects the economy to grow significantly over the coming year, whilst 24% expect it to grow marginally. A further 45% expect it to stay much the same as it is now, whilst 29% expect it to shrink a little and 2% shrink a lot. These figures are down versus last year.

The Retail sector is the most pessimistic, with 92% predicting things are going to get a little or a lot tougher (transport & travel are the only ones who predict ‘carnage’!)

Less than half the panel feel their organisation’s profit will increase in 2012, though up from 41% last year. 19% feel their profits will fall this year, 6% more than last year. 3% are undecided.

Budgets – mixed news. The proportion expecting an increase has remained similar to last year, 23% down from 24%. However this figure is still dwarfed by the 33% expecting a decrease (though also down from 37% last year). The remaining 44% don’t expect to see a change.